NYSE Wants to Bring Back Speed Bumps

5/31/2013 4:00PM

The NYSE wants to bring back some of the speed bumps it uses to curb stock swings after several securities went for wild rides in recent weeks. Does Google care about its Android “partners”? Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... his stock trading now is so fast and makes you dizzy ... yields on it changed hands on and so a slow things down will have the skinny on back and mall right and right now on the New Saab ... good afternoon and welcome I'm Simon Constable ... with more on the list for exchange plans will Street gentle more exchanges reported Jacob Bunge e joins us now from Chicago area's high so they mess up ... Simon idea ... and I'm very well fine thank you again for being map so so tell us what's what's going on and what that you'll still be changing his planning and why ... right well what we've got as a battle ... over safeguard its basically you have disagreements over car seat belts ... child safety seats the same thing going on the stock market ... and that what you have rolling out right now across the stock market Nenad states is what they call a limit up limit down ... system and what this does ... is sets out price bands ... above which a stock's price can move in a certain period of time and this is meant ... to prevent ... Stocks from ... shooting hire falling rapidly lower over a short bit of time like we saw ... in the flash crash in two thousand and ten ... and that the issue here is that as they've rolled out this new program over the last couple months ... the NYSE has had to roll back its own program today that hadn't played since two thousand and six ... and which it said had worked ... I just find you know up to and including during the flash crash ... and so now we have the new system or now what we have is a fifteen minute window right after the open of trading in the morning ... and a half hour window at the end of trading ... every day ... where there is no ... price band of the facts ... and what you've seen last couple weeks is a couple of instances where some stocks have ... cratered ... in a matter of seconds ... and they've had to cancel some trades ... the NYSE says why don't we put our old system back in place and knows it ... and what one of the one of the disadvantages of putting the old system back in place why would anyone wanted to I mean the flash crash was ... was battery all aam into a lot of people ... well the arguments against the bill like this ... you know you've got a rolling out now and this is blessed by all exchanges and the SCC a system that covers all of the stock exchanges the United States and that's thirteen separate markets ... I'd to have it that's ... co existing with his previous system that's in place just on a couple of these changes that are run by the NYSE ... there is a way that he gets a little too complicated ... and that there's also an aspect to it where you know the NYC as this special card Mme the other exchanges have it so ... you know it's there at a competitive advantage that they have for ... you know converse Lee is there an issue of one of their slower periods kickstand ... which is how they they manage volatility and and the rest of the state is still on as per normal ... detective very quickly used to pay back its shares were traded by men and women outlook saying that both AMR shouting at each other chatting chatting boarded the it's called open outcry if that describes the situation ... and if they would slow up but you'd tended not to have such a wild swings as fast drying ... well you knew it there the open outcry model was you know the norm for decades and decades ... the NYSE is model of controlling volatility doesn't fall ... I'm ... the designated market makers as they call them on the floor of the NYC stepping and ... trying to ascertain a little more rational price ... and that that process involves slowing down the trading so you know that some aspect of the ways and ... I he yelled ... is Simon the ... any trading forum you can go to some of the computer ... oriented trading operations ... are still plenty of people yelling in there ... and there's people in and they'll tell you today during the you know that decades of open outcry trading there are plenty of problems going on with wild prices ... people calling out the wrong thing people misinterpreting signals so this out ... the idea that this toxic ... trash that they ... do much higher ... it's not new but the issue now is that happens in a blink of an eye ... oh and interesting stuff ... thank you Brian much Jacob Bunge of The will Street gentle we appreciate time ... can you be on the read mall man on WSJ dot com ... time for a quick look at the markets now is the chief in a choppy day on Wall Street the Dow down to one hundred points up ... with a selling off after two just winding down map ... aam similar pattern with the Aston case in love ... with the mass back as well ... aam sliding it down past wordy pricey the past two o'clock and I was really ... on the back of somebody's quite good economic day says so ... aam a bit of a puzzle and maybe the Mach is it just come so far ... ALM so quickly and people are taking some profits on the last ... trading day all of the month ... Motorola CEO Dennis Woodside plans for a cheaper Android smartphone should have Samsung and I was quite King and that ... it's so says Rolfe Winkler and will join us in thirty seconds ... ay ay ay ay ay ay ay ... and ... every product and technology ... the appeal of the computers to look at ... the TV as you look at ... laptops the price is gone like this is a component costs the fall ... it ... those companies can earn fifty percent margin on those products we don't a surly have the same constraints ... and one of the areas that we think is really ... Open for Motorola is ... building high quality low-cost devices ... so for the price of a feature phone now is about thirty dollars on a global basis ... prices smartphone a six hundred fifty dollars ... that's not to persist ... Motorola CEO Dennis Woodside has plans for a cheaper Android small fine and I should have a Samsung and I was quaking in their roots that's what Wall Street John all of the Chronicle technology Rolfe Winkler says an e joins us now to discuss and sending him ... on the fifteen year gap and his plans so one day said she doesn't wears white snow is is that it's a great PR of companies for me and smile funds unless they called Samsung will ... have those of the two companies that make ... pre much all the profits now in smartphones him ... and ... looked Woodside said it himself very well he said the history of ... really consumer technology in general PCs film ... and television's I mean ... getting in some cases the cost of these devices that had only as their ... and as the technology improves and meanwhile the hardware been arm where profits are available ... just get contracts to me today ... HP Makes around three percent operating margin selling PCs ... the Taiwan for starters there's the law to profit there so you you think this is can it change ... things for Samsung well ... really because look global gold as this particular strategy which is to make sure that Android gets is much market share is possible ... they offer the operating system for free in the make money on the back end because most Android devices ... distributable services search keywords in a weekly got most of the search results they make money ... I'm cool maps ... he also have search inside Google Maps all of these very services the cool puts on Android ... benefit balance to its right to give that away for free in owning Motorola ... he can ... help pursue the strategy by offering devices ... very gently at a Miami was saved ... they of course even ... moto role operates completely independently from Google ... this is as strategies in their phone completely on Iran and ... that maybe it just happens to line up perfectly there as there are ten loss as the meimei and I mean do you make some great points about the role of of of smartphones out that some of them are expensive and some of the MA less expensive and still people want the I phone ... some people do something to growth is its growth is has slowed dramatically still crawling around this the law to rewind I find most people I think it's like a lot of that growth came from increasing distribution ... it has over the past since two thousandseven ever this is a device that started ... with one carrier in one market ... and over the past five sixty of the past six years ... has ... rolled out successfully add more more carriers with that tailwind ... has ... gone away based on adding new carriers there's only a couple more task really ... and so you've seen the growth ... the surface or do reach the top of the US ... some ... of the company some point to that of been fine with a smartphone well ... Nokia they have them miniseries which looks like a beautiful phone it really hasn't done that well to clean this market the most unlikely that the hawk and I think the important thing ... really keep our enemies yet no piece of their prom that's that's another upper Kingston tallies windows ... aam but remember the entry ... into a system is is really sort of gobbling up the entire market and there are interest coming and it's not just Motorola plans can have a Model X Phone and from what size comments it suggests that the phones can be priced ... very aggressively relative to other high-end phones a market ... if the looking either manufactures to they're doing the same thing as one in China called ... shale me ... in three years old ... they sold the they had two billion dollars roughly their CEO claimed two billion dollars worth of sales last year ... selling basically answering phones at a cost ... to basically under three hundred dollars ... device that they would argue is ... more or less equivalent as good as the Samsung Galaxy S four ... around around around me maybe maybe not exactly the same but ... high quality components ... much cheaper ... will we will look to see if anyone's Noah trying and fruits ... thank you very much ... WellPoint's love the songs for you read that tomorrow's Wall Street analysts on some errands boss now ... updates on the Barron's Buzz low we take a sneak peek out what is in some are as news spread fast and as of oh we have seen the adult Barron's Jack out with us on the sets ... I see some nice to see you to calm your colleagues have been nom ... not smoking far right in writing about costs ... I don't always be outnumbered assume they haven't spoken to have been reading about it ... it's our cover story this week ... were talk about the ... seemingly unstoppable trend toward ... the criminalization or were liberalization twenty six states now have taken ... some steps toward little Rock liberalizing ... marijuana use ... aam ... and the question is will become more for the federal debt ... what's reason all sorts of ... conflicts between state laws and federal laws now you have states like ... Colorado and Washington which are ... moving toward really legalizing marijuana use ... the problem is that the banks there one set of accounts for anyone who deals with this stuff ... up forcing them to deal with cash banks are worried about federal law which still bands now want your seat got ... people dealing with large amounts of cash to raise the threat of robberies the porch or how to pay their taxes so what ... we look at the numbers in a story it's really ... I'm the exact reason for people were like municipal bond investors are people born to state finances if it gets its wish for ... California State is to raise more tax revenue for marijuana than it currently collects from alcohol and cigarettes combined could be a meaningful tax contributor that's meaningful architect profit smaller financially of PF cough and this is ultimate stock options ... yes stock options and stock grants which are really the larger portion of the Surface panic ... and to bury the story here were basically ... PE outlines why ... all tech profits are not equal there are some companies out there like like Facebook and Google and Amazon and Salesforce stock on that don't include ... the cost of diesel employee stock grants from him in the dark but the Marines that point investors toward a measure that does not include them ... there are other companies like Micra soft and Apple and tell the viewers ... a more conservative approach would include these expenses ... you can get big difference in earnings depend on whether you include the cost ... of giving stock away one points for example ... sells for stock come swings ... from a profit this year ... to a loss this year if you subtract ... for for the stock Aranesp inequality all the time we all ... know the make sure you're making an apples to apples comparison under tech stocks Apple stood out of the tech company ... aam they go on graduation day spinoffs tells about this with an about face I it's the Number spin offs is up fifty percent this year and are solid evidence out there that spinoffs outperform all the copies being spun off and the companies that remain ... aam we gotta look it's Mofcom spinoffs and which ones investors on there right now ... and we of course it could be a spinoff ourselves to a new school we don't upon in on ourselves but that Mr. that is true ok thank you very much ... now the show to pick up one on Barron's ... on ... news stands tomorrow even subscribe ... why it pays to strategize when booking a last minute vacation and is the chief on vacation and get things right in his himself MarketWatch has put the trial ... who is going to give us the skinny on the effects of an irony ... that high-tech Island dress for vacation you will ... just pray I had a ... bye I'd love it um this is what we now know what you spend all day during flight okay so use a discount travel sites and ... in the destination of your choice explains planets ... stars just yet so you wanna is a really good time to be an inch natural because ... companies Leno but has the UIA Gunnison and furloughed accounts of finding a deal on the travel vacation yes from medication ... to ALM so there are ... more people are gonna be going whoa this is your fight in the consumer confidence is of a five-year high but they are still according to surveys ... will be spending less than they did last year ... so it's gonna be a little bit tougher to get a deal but from their possible from the very thoughtful ... so you say scouts now the travel sites for deals in the destination choice of a case of a basket and some islands to the lower the price is closer to that option right so when I first episode is tomorrow to get a good deal right not necessarily by the deal from it was that Delta flight from New York to Savannah ... from the mine but didn't and ... in fact very ... meeting in June ... I was three seventy six ... by politics ... from a month ago ... it was less a month ago there was a hundred and twenty dollars cheaper thirty percent cheaper ... so it's possible to get flights ... up close to departure as airlines over but the increase in custody and are afraid of losing their seats okay so another round of the epilogue ... aam and and so the lesson on an hour and ... it is tempting to get off the five-year chart in Iraq to the airport ... because the last thing you should too soon were Steel's you again in the car rental up to now also on alternative to travel itself can call for even bigger savings what's up with ... a bright so aam you if you're an important troubles newer vacation rentals talk all I can sum up to fifteen percent off ... their faces and why am Merkel beach town centerline and ... you can go to ... somehow make sense of calm which is ninety five one thing is that plenty of times ... space and the ... principle that humans are essentially good and trustworthy because the linear has ... fewer than there has ... already begun to fight like HomeAway dot com which has a aam ... I think I've mentioned it here click over seven hundred and four she ... thousands listings of some luster to do they know that the unit of your ninety set when your ... house that that's the question but it's because they will have their innovation have a spy camera they should pay for ... it said it is a must see show ... aam ... for a vacation e thank you Brian much going for trial MarketWatch and will write stuff in my column ... it's gloomy and Grumman and have the bounce for Wall Street John all TV critic Dorothy Rabinowitz as all the killing Shel Joinus confetti seconds ... it is ... true ... beginning in history ... it blew me at and grandmother and I well that's what Wall Street John all TV critic thought they Rabinowitz as all the killing and she joins us now to give ... us the skinny on Max and Office stopped to thank for then it's always a ... concern ... now I've I've watched a killing no one stayed above from language Russian ... tells of what we can expect in this one ... we can expect ... gloomy and other stuff or you can expect to ask yourself ... why am I watching this but he did ... and that's what us itself although last season to ... this something that Venus so did the right a ... penny just introduced into the show it's it's it's impressive slow growing ... darkness that keeps you guessing is very good suspects ... a very good suspense we'd like ... but this is not if you're feeling down even feel down on you know now that that that it's it's going and you better be safe to say ok ... I know that they're least I have this nice apartment ... it's kind of contract and you know it's cliche but ... there are actors fear itself Roku which is much mobile gloomy expect forensic accounting at any minute ... is a kind of narrative voice in itself and you wonder why people living here in Seattle ... so this this one is about a bunch of street people ... about a bunch of the art of murder Apple may not be a murderer ... and so unfolds in the two L A premium which is really very ... fetching ... you see that that ... that detect them ... has the gun onto a different life for about five minutes to which is not suited to be a happy person that a smoker runs ... and she's right back in it by the end ... so let's move on sale on quickly once he called Temecula moths to how we of the law but tells about that with what he called to testify embossing against the from the Austin and I he had this extraordinary and background ... and his two brothers who were younger ... with this team citizens one of them was the ... head of the Massachusetts Senate ... who somehow didn't happen to notice that his brother was one of these at gangland ... Chiefs none of my no one who killed nineteen people ... but he was under the protection of the FBI ... it was a strange phenomena Zuma protection hope somebody ... who was themselves pasta to the top of the ODI agent Donnelly ... and this FBI agent ... felt as though this did ... this guy was so important to them ... but he came to on into this ... nothing I can do ... is is important is the fact that this is the true documentary on the Nikkei channel ... the fact that this thing went online in Boston Massachusetts ... all of those Deezer the ... nearly twelve years for eleven years of life so there's a grain ... of basic tariff ... and when you have the police protecting you ... he did everything ... and then he ran away to those required ... in Santa Monica somewhere ... when he was caught ... and it was all over ... but ... that you can operate this way ... in a major city ... everybody knew it was terrifying it is ... wonderful ... it's a wonderful show comic thank you my much was applied to ... Dorothy Rabinowitz ... will Street dolls TV